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05 Dec 2004, 05:28

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A

B

C

D

E

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A manufacturer of anti-inflammatory medicine for infants recently discovered that a batch of its medicine still in production contained improper and potentially harmful quantities of certain compounds. The manufacturer immediately issued a recall of all recently shipped batches, but some executives went on to propose that all remaining batches be destroyed as well, even though it would cost the company millions of dollars in lost revenue.

The proposal to destroy the remaining batches of medicine depends on which of the following assumptions?

A. The company will be able to recoup any lost revenue through sales of other medicines.
B. It cannot feasibly be determined whether the remaining batches of medicine are salable.
C. The public will not be aware of the destruction of the remaining medicine.
D. Destruction of the remaining batches would ensure that improper quantities of the compound are not present in any of the company's products.
E. Some of the remaining batches of medicine do not contain harmful quantities of the compound in question.

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06 Dec 2004, 11:02

gayathri wrote:

Can someone explain why it is B?

gayathri,
Let me try, the proposal to destroy all the other batches would insure that there is no chance that any other children would get affected by this faulty medicine, that is what the proposal is trying to acheive. To acheive this goal the manufacturer is assuming that there is no other way to test them, if this not true then they could test the rest of the batches and didn't have to go by the proposal. I hope it makes some sense.

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A. The company will be able to recoup any lost revenue through sales of other medicines.

Company is not worried about sales nor revenues , eliminate A

B. It cannot feasibly be determined whether the remaining batches of medicine are salable.

If company can determine which batch has faulty medicine it can destroy only that batch but since company cannot pinpoint the problematic batch and it doesn't know which batch can be sold .

B is a proper answer for this

C. The public will not be aware of the destruction of the remaining medicine. - out of scope
D. Destruction of the remaining batches would ensure that improper quantities of the compound are not present in any of the company's products.
- some of the batches might be good in this so there is no need to destroy all of them .E. Some of the remaining batches of medicine do not contain harmful quantities of the compound in question. - out of scope
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